U.S. stocks are starting the day on a positive note, with the S&P 500 and Nasdaq Composite both seeing modest gains in premarket trading. This momentum puts both indices on track for weekly gains. Bond yields have pulled back slightly, with the 10-year Treasury just below 4.6%. Meanwhile, oil prices have surged by more than 4%, with West Texas Intermediate crude reaching for $87 a barrel.
Bank of America has reiterated its support for Nvidia, a Club holding, as a “top pick.” Following a product-line update on its graphics processing unit accelerator, Bank of America has maintained a buy rating on Nvidia shares and a $650-per-share price target.
KeyBanc has raised its price target on Palo Alto Networks, another Club holding, to $315 a share, citing the company’s strength as a long-term consolidator of security. They have also raised their target on Alphabet, another Club holding, to $155 a share, noting improvements in the ad market and strength in retail and e-commerce.
Wells Fargo has delivered a third-quarter beat, benefiting from higher rates and investments in their businesses. Their CEO, Charlie Scharf, believes this positions them well for the future.
JPMorgan Chase’s third-quarter profit has exceeded expectations, with a surge of 35% year-over-year to $13.15 billion. The bank generated more interest income than expected and had lower credit costs.
Barclays has lowered its price target on General Motors, citing weak investor sentiment and the possibility of a “buy-the-news quarter” for automakers.
Wolfe Research has downgraded Netflix to a neutral-equivalent rating, predicting a future shortfall in gross ads.
Mizuho is optimistic about Meta Platforms, a Club holding, as the tech giant’s advertising-revenue growth is tracking ahead of consensus. They have reissued a buy rating on Meta stock with a $400-per-share price target.
JPMorgan has initiated coverage on Post Holdings with an overweight rating and a $100-per-share price target. Post Holdings, known for cereals and pet foods, is expected to generate strong cash flow that could be used to reduce debt and buy back stock in the coming years.
These are the top market updates to watch for on Friday, Oct. 13. Stay informed and sign up for our Top 10 Morning Thoughts on the Market email newsletter for free.
– S&P 500: The S&P 500 is a stock market index that measures the stocks of 500 large-cap U.S. companies.
– Nasdaq Composite: The Nasdaq Composite is a stock market index that includes all stocks listed on the Nasdaq stock market.
– Bond yields: Bond yields refer to the return on investment that an investor can expect to receive from a bond.
– Club holding: A club holding refers to a stock that is held by an investment club.
– Price target: A price target is a projected price level for a stock, usually set by analysts, at which an investor can consider buying or selling.
– Buy rating: A buy rating is an analyst’s recommendation to buy a particular stock based on their evaluation of its potential for growth and positive performance.
– Overweight rating: An overweight rating is a positive recommendation for a stock, indicating that it is expected to outperform its peers or the overall market.
– Third-quarter beat: A third-quarter beat refers to a company’s financial performance in the third quarter exceeding analysts’ expectations.
– Earnings season: Earnings season refers to the period when publicly traded companies release their quarterly financial reports.
– Interest income: Interest income is the money a financial institution earns from its interest-earning assets, such as loans and bonds.
– Credit costs: Credit costs refer to the expenses incurred by a company or financial institution related to providing credit or loans.
– Gross ads: Gross ads refers to the total number of advertisements sold or displayed by a company without deducting any costs or fees.
– Cash flow: Cash flow is the net amount of cash and cash equivalents that flow in and out of a business.
– Debt: Debt refers to money that is owed by a company, typically in the form of loans or bonds.
– Trade alert: A trade alert is a notification sent out by a financial adviser or investment firm to inform clients about a trade or investment opportunity.
– Bank of America
– Wells Fargo
– JPMorgan Chase
– Wolfe Research
– CNBC Investing Club